Cambior projects output of 200,000 oz gold in ’88

Gold production of 200,000 oz in 1988 is projected by Cambior Inc., which recently gained control of Sullivan Mines.

Quebec-based Cambior, which was formed about 15 months ago, increased its ownership in Sullivan to 100% from 35% when shareholders of the latter approved a merger with a wholly-owned subsidiary of Cambior; the new company created by the merger is called Camsul Ltd.

Cambior, through Camsul, now has a 34% interest in the Arthur W. White gold mine located in northwestern Ontario near Red Lake; the mine produced about 68,000 oz gold in 1986. The company also gained a 25.9% interest in the Valdez Creek placer gold project in Alaska and interests in numerous exploration properties.

The company has also obtained ownership of the Eldrich-Flavel project located 12 km northwest of Rouyn-Noranda; an underground exploration program there this past spring generated proven and probable reserves of 1.6 million tons grading 0.16 oz gold per ton.

Cambior says it intends to complete the underground programs and feasibility studies on the Eldrich-Flavel project and on another prospect, the Pascalis project in the Val d’Or area, in 1988. Assuming favorable decisions to bring these two deposits into production and with the producing assets obtained from Sullivan, Cambior says it expects to raise its total gold output next year to 200,000 oz. (Cambior has a 50% interest in the producing open-pit Doyon mine in northwestern Quebec; Lac Minerals owns the other 50%.)

Underground exploration programs were initiated this year at the Silidor project in the Rouyn-Noranda area, in which Cambior owns a 25% interest, and the Mouska project in Quebec’s Cadillac area, where surface drilling has indicated reserves of 1.6 million tons grading 0.18 oz. The company says these programs will be completed by the end of 1989, and if these deposits are brought into production at that time, the company’s gold production in 1990 will exceed 250,000 oz.

In gaining control of Sullivan, Cambior now shares ownership of the Arthur W. White mine with Dickenson Mines (65%) and William G. Brissenden Inc. (1%) of Toronto. Brissenden recently offered to sell its 1% interest in the mine for a consideration of slightly more than $2 million and Cambior, through its Sullivan purchase, has the right of first refusal on the offer.